Fuel price probe applauded

The Victorian Automotive Chamber of Commerce has welcomed the recent investigation by the Australian Competition and Consumer Commission Chairman, Rod Sims, into supermarkets and fuel discounts.

In 2003, when Coles entered the fuel retail sector, VACC said consumers could end up paying more for groceries and in the long-term petrol competition could weaken. "In 2013, that is exactly whats happened," VACC Executive Director, David Purchase said.

The VACC has called on the ACCC to conduct a thorough investigation into supermarkets and their retail fuel partners and in particular, shopper dockets, anti-competitive behaviour and creeping acquisitions. "We have raised concerns about the retail fuel industry for many years and well before the first shopper docket was introduced in Australia, by
Woolworths, in 1996," Mr Purchase said. 

"We have written countless letters and submissions, arranged meetings and promoted our concerns through the media. "Finally, the ACCC has heard what we and other independent suppliers and retailers have been saying."

In little more than a decade, Mr Purchase said Coles and Woolworths have spread across the Australian retail landscape. "They run a near duopoly in the $84 billion grocery industry and enjoy a combined share of around 50 per cent of the retail fuel sector. "They control and influence suppliers and cross subsidise across their many outlets through heavily discounted products and promotions.

"On the other hand, independent service station owners are small businesses, price takers, disadvantaged throughout the fuel supply chain, and have little or no opportunity to discount fuel or convenience store items. "We anticipate the ACCC investigation will not be easy and will have to overcome many hurdles  the supermarket's legal teams will be well prepared.

"But this is an important crossroads for Australian suppliers and consumers and it is important Mr Sims is resolute in his pursuit of fair competition," Mr Purchase said.